Tesla briefly dips after Saudi wealth fund invests $1 billion in competitor Lucid Motors

  • The investment will fund Lucid Motor's 2020 commercial launch of its first electric vehicle the Lucid Air, Reuters reports.
  • Tesla CEO Elon Musk had previously touted conversations with the Saudi fund as key in considerations to take Tesla private.

Tesla stock dipped as much as 2 percent Monday morning on news the Saudi Arabia's sovereign wealth fund has invested $1 billion in rival Lucid Motors.

By market close, Tesla had regained its footing, ending trading essentially flat.

The investment will fund Lucid Motor's 2020 commercial launch of its first electric vehicle, the Lucid Air, Reuters reported.

Tesla CEO Elon Musk had previously touted conversations with the Saudi fund as key in considerations to take Tesla private. Musk cited a potential Saudi investment as justification for his take-private tweet in early August and claim that the necessary funding had been secured. After an uproar, Musk and Tesla eventually ended their plans to go private.

News of the Lucid investment came a day after Musk blamed outside shops for repair and delivery delays.

Tesla stock had been on a recovery rally, gaining 12 percent last week.